6. In the Lloyd's Market, the retail broker is the agent of the:
Client.
Insurer.
Managing agent.
Lloyd's syndicate.
7. Risk is normally assessed in terms of:
Impact and likelihood.
Frequency and severity.
Frequency and likelihood.
Severity and impact.
8. What does the Financial Conduct Authority have to report to on an annual basis?
HM Treasury.
Parliament.
Prudential Regulation Authority.
Bank of England.
9. What does the term 'fortuitous event' refer to?
An accidental or unexpected event.
A known or predictable event.
An event which if it occurs, is widespread in its effect.
An event whose impact cannot be measures in monetary terms.
10. Who will usually purchase contractors' all risks insurance for a construction site?
The main contractor.
The main contractors.
The property developer.
The architect.
11. In the London Market, who draws up a slip?
The insurer.
The broker.
The insured.
The Names.
12. Peter is applying for motor insurance and has disclosed that he has three unexpired speeding offences. He is aged 58 years and drives a small 1100cc car. In underwriting his insurance, what is the KEY concern likely to be?
Peril.
Severity.
Moral hazard.
Physical hazard.
13. These are all examples of the actions an insured can take to prevent loss and control their risk, EXCEPT:
Taking out insurance to transfer risk.
Reducing an insurance policy excess.
Installing a sprinkler system.
Arranging contractual terms so that contractors are liable for their actions.
14. What is the main purpose of Solvency II?
To increase the use of reinsurance across the EU.
To harmonise EU regulation and to increase the level of assets insurers must hold.
To increase brokers' levels of assets and make it more risk sensitive.
To standardise insurance conduct regulation across the EU.
15. What is the offshore energy insurance market commonly called?
Downstream business.
Upstream business.
Midstream business.
Downflow business.
16. Those who propose for insurance must disclose all material facts they are aware of. This describes the principle of:
A good faith.
Proximate cause.
Indemnity.
Insurable interest.
17. A visitor to a shop slips on a wet floor and sues the shop owner for negligence. What type of non-marine liability insurance could meet any resulting costs of this action?
Employers' liability.
Public liability.
Professional liability.
Products liability.
18. The PRIMARY role of the underwriter is to:
Accept or decline the risk.
Determine following market underwriters.
Obtain reinsurance.
Select a suitable broker.
19. When would average be applied to an insurance claim?
Where the policy is subject to a franchise.
When there is underinsurance.
When the risk is insured with more than one insurer.
When the insurer settles a claim but reserves the rigt to reclaim some of the loss from a third party.
20. If an insured has bought contingency insurance, this would NOT typically include:
